A small coastal community in Western Australia’s Midwest is bracing for a sharp economic shock, with more than 100 jobs set to disappear following the sudden closure of the Lucky Bay garnet project near Kalbarri.
Mineral Resources (MinRes) confirmed the operation will be placed into care and maintenance from July 1, citing soaring diesel costs and the impact of ongoing conflict in the Middle East a region that accounts for a significant share of Lucky Bay’s sales. The company said a recent strategic review found the mine was no longer financially viable in the current climate.
The closure is a heavy blow for Kalbarri, where MinRes is one of the largest employers, alongside another garnet operation. Shire of Northampton CEO Andrew Campbell said the loss of 110 jobs would hit the town hard.
“It is very significant,” he said. “Kalbarri will be severely impacted by this closure. It will have an immediate effect on the individuals, but those employees have families as well, so the short‑term impact will be very significant.”
MinRes told the ASX it would offer redeployment opportunities to affected workers, but confirmed it expects to declare a $40 million loss in its upcoming accounts. The company also said it will consider all future options for Lucky Bay, including a potential divestment.
The shutdown comes less than a year after MinRes acquired the project from the administrators of Resource Development Group. Campbell said there had been “some degree of hope” the company could revive the operation.
For now, local businesses particularly in retail and hospitality are preparing for a downturn as families weigh whether they can afford to stay in the region.
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